Xiaomi to roll out 20,000 new retail stores across rural China over next three years to drive smartphone ambitions
- Xiaomi will build up its retail network in lower-tier cities and small towns across China’s countryside, which make up 70 per cent of domestic smartphone demand
- The Beijing-based company currently operates a network of 10,000 bricks-and-mortar stores in the world’s largest smartphone market
The domestic market is Xiaomi’s “base camp”, Lu wrote. He said the company’s plan involves building its offline presence in “sinking markets”, referring to the lower-tier cities and small towns across China’s countryside, which account for 70 per cent of the domestic smartphone market.
What's behind Xiaomi's meteoric rise?
China’s smartphone market volume reached 76.5 million units in the third quarter, down 9 per cent from a year earlier, amid stagnant local demand and component shortages in the industry, according to a report released last week by Counterpoint Research.
“Xiaomi’s position is expected to be challenged the most by Honor,” said Counterpoint senior research analyst Ethan Qi in the report. He indicated that both Xiaomi and Honor have “a higher sales contribution from online channels”, compared to other major Chinese Android smartphone vendors.
The global smartphone market declined 6 per cent to 342 million units in the third quarter amid the ongoing global component shortages and the slow recovery of key markets such as China and parts of Europe, according to a separate Counterpoint report last week.
It said Xiaomi shipped 44.4 million units last quarter, down 5 per cent from a year ago, because it was “severely hit” by component shortages. The firm ranked No 2 globally behind Apple, which shipped 48 million units in the same period.